Regulation 70

1. This Schedule applies to any reconstruction or amalgamation involving an open-ended investment company which takes the form of a scheme described in paragraph 4 other than one to which Part 4 of the Undertakings for Collective Investment in Transferable Securities Regulations 2011 applies.

2. An open-ended investment company may apply to the court under section 896 or 899 of the Companies Act 2006 (power of company to compromise with creditors and members) in respect of a scheme falling within any of sub-paragraphs (a) to (c) of paragraph 4(1) where -

(a) the scheme in question involves a compromise or arrangement with its shareholders or creditors or any class of its shareholders or creditors; and

(b) the consideration for the transfer or each of the transfers envisaged by the scheme is to be -

(i) shares in the transferee company receivable by shareholders of the transferor company; or

(ii) where there is more than one transferor company and any one or more of them is a public company, shares in the transferee company receivable by shareholders or members of the transferor companies (as the case may be);

in each case with or without any cash payment to shareholders.